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When the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens collection centres at the regional stage. The customers are instructed to remit payments to their exact regional centres. These regional centres will open bank accounts along with the branches of banks where this has collection potential. These branches will electronically or telegraphically transfer the collected amount to the Head Office bank account. Such system accelerates cash inflows.
What nonfinancial factors should management consider in making its decision on whether to accept or reject a special order?
disadvantages of transfer pricing
RELEVANT COSTS FOR NON-ROUTINE DECISIONS A relevant cost is a cost that is appropriate to a specific management decision. To be relevant, a cost should be: 1) Future cost
Full Service Recourse Factoring : In this kind of factoring the client has to bear the risk of default made through the debtors. There the factor had advanced funds against book de
Dynamic programming It is an extension which finds solutions to problems involving a number of decisions which have to be made sequentially. For example, the amount of a produc
HOW TO CALCULATE MATERIAL ACCOUNTING
Granger products had the following transactions for the just completed month. The company had no beginning inventories. a)$75,000 in raw materials were purchased for cash. b) $7
Explain Administration cost and Pre production costs Administration cost: The cost of formulating policy, directing the organization and controlling the operating of an u
SK 2 Chapter 10: Master budgeting Objective How organisations strive to achieve their financial goals by preparing a number of budgets that together form an integrated business pla
Q. What is Pricing under decline stage? Pricing under decline stage: under this stage sales are at their highest point. He should reduce the price if necessary taking the compe
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